Economy Will Turn Ugly Quickly

There was a strong ADP jobs number for December, credit growth is stable to rising. On the other side, there's no dip in credit risk yet. Jobless claims hit 231,000 last week which if it holds over 4-weeks, will end the downtrend in claims. The PPI is forming a possible head-and-shoulders that would have a target more than 25 percent below current prices. The PPI tumbled 15 percent in 2008. If the economy weakens from here, indicators could flip quickly or extend much further into bearish territory.

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